Individuals who have a stable source of income and repayment capability, a good credit score and credit history can easily get a personal loan granted within no time.
However, one should be aware that the repayment of personal loans is done in the form of EMIs. It is a definite amount of money that the borrower is required to pay to the bank/lender on one specific date every month until the tenure of the loan is over.
This means that the borrower cannot withhold, avoid or postpone this formal expense. Most people do not realize nor prioritize the repayment of their loan via the EMIs.
EMI calculators are loan associated tools that are increasingly gaining popularity owing to its helpful assistance regarding the calculation of personal loan EMIs. Source- Emicalculator
Here are a few smart ways to manage personal EMI payments:
#1. Do your research and assess your loan requirement
It is very important that you do your research. Be aware of all the various interest rates and offers available in the market before opting for the bank or lending institutions you will borrow from.
It is also very important that you borrow the amount you absolutely can benefit from instead of an unnecessarily outlandish sum of money. Extra loans will end up adding to your EMI load which will end up being more of a tedious commitment.
#2. Assess your repayment capabilities and strategies
One usually takes a loan when he/she is in dire need of financial assistance. This should be an alarming point to consider before deciding the amount that you will apply for the personal loan. Most of the major banks and lending institutions have a personal loan EMI calculator which can help you ascertain the interest rates and the amount repayable.
Higher loan amounts will require higher EMI repayments. You should also be certain that you are capable of repaying those borrowed sums and strategize smart ways to do so.
#3. Use an EMI calculator before applying for your personal loan
It is a very clever step to calculate your personal loan EMI using the personal loan EMI calculator. This will benefit you in the future by giving you an exact idea of the amount of money the borrower will be required to pay to respective banks/lenders every month.
With the help of the personal loan EMI calculator, you can adjust the personal loan amount, and prevent yourself from taking a higher loan if the EMI amount calculated ends up being a strenuous burden on you.
#4. Prioritize your EMI payments
Make it a priority to make the EMI payment on the allotted date and time. Do not miss deadlines and delay these EMI payments. Delaying the payment will not only burden you further with extra penalty charges but also tamper your credit repayment track history.
And entirely missing the repayment EMI altogether will result in higher penalty charges and severe consequences with regards to your loan and credit score.
Be mindful of the dates and keep reminders to ascertain that you do not jeopardize your repayment track record and prevent yourself from unnecessary and avoidable consequences.
#5. Aim to maintain a decent credit score
Credit score ranges from 300-900 and most banks and lending institutions prefer to approve loans of the applicants who have a credit score of over 700-750. Good credit scores not only amplify the chances of approval for your personal loan application but also gives you a chance to lower your interest rates.
It also helps you gain respect and integrity which can work in your favor. For instance, you are still struggling with finances, your history and credit score and proper negotiations with your bank/lender can help you get an EMI date extension and adjust the tenures.
#6. Focus on accumulating savings
Your EMI payments are rigid and unavoidable for various reasons. Therefore, you should keep aside a decent amount as savings. This amount of money can turn out to be more helpful than you can perceive. For instance, you do not have your EMI repayment amount ready, this savings amount can come in handy.
There is an emergent requirement of financial resources, a family member needed medical surgery or hospitalized then this savings amount can bear the burden and not pressure you or pile up borrowings.
To conclude it is very obvious that managing your personal loan EMI payments is an easier task than it is perceived to be. A little bit of extra mindedness towards this repayment commitment can go a long way.
It is also advisable for the borrowers to cut out possible unnecessary or arguably luxurious expenses until the repayment process is over and done. Any lenience or delay on your part will most probably tamper with your track record and credit score irrecoverably, this has the potential to be the cause of many rejections of financial assistance in the future.